Published on October 23, 2025

Weekly Strategy Perspectives - Consumer Conundrum

Week Ending 10-24-2025. Consumers drive nearly 70% of U.S. economic activity, but their spending power varies widely across demographics and income levels—differences that could significantly influence growth, industry trends, and policy decisions.

Written by Carol Schleif, CFA, FSA

Consumer Conundrum

“Consumption is the sole end and purpose of all production; and the interest of the producer ought to be attended to only so far as it may be necessary for promoting that of the consumer.”
– Adam Smith

The Through Line: Powering nearly 70% of U.S. economic activity, consumers are literally A. VERY. BIG. DEAL. While it is tempting to view them as a monolith, significant disparities exist across demographic and earnings cohorts. Understanding these differences offers a vital perspective on factors that could shape the trajectory of growth, industry fortunes – and perhaps even a policy decision or two – in coming quarters.

Click to read: Weeky Strategy Perspectives - Consumer Conundrum - 10-23-2024